Why are my sprinkles floating and not sticking to the mesh?
The problem was that the origin of your sprinkle object was very far away from the actual mesh.  That is why your sprinkles are all floating above the doughnut.
All you need to do is select your sprinkle object, right click, go to Set Origin and then click Origin to Geometry.

After that, your sprinkles should show up on the surface of your doughnut.